Breaking News
 
TOOLS
Print PRINT
E-mail EMAIL

Cerberus Doesn't Want to Play Anymore, Wants Refund for Chrysler

By Ross Edwards
Wednesday, Dec 03 2008 11:07

Banner

Cerberus, the private equity firm that purchased 80.1% of Chrysler from Daimler, wants their money back. Cerberus says that Daimler gave misleading information about Chrysler during the sale. Cerberus has owned Chrysler for about a year and says that the company has had much higher losses than anticipated.  Cerberus should know that after 30 days you can only get store credit.

"The claim is baseless and absurd," Daimler spokesman Han Tjan says. "Absolutely incorrect and completely without substance."
 
Chrysler was owned by Daimler, the parent company of Mercedes-Benz, for nine years. Daimler failed to turn the company around in that time and the sale to Cerberus was an attempt to cut their losses. Daimler saw significant losses when it sold Chrysler to Cerberus, about $650 million according to USA Today.
 
Daimler was trying to sell its 19.9% stake in Chrysler to Cerberus, but Cerberus’ buyer’s remorse has put a stop to that.
 
Maybe Chrysler’s customers should try the same argument. Their investments have depreciated a whole lot more than anticipated too.

Cerberus' Headquarters. 

Image via dailylife.com


Confused or unsure about some of the car loan terms used in the article? Click here for our Auto Loan Glossary.



Share/Save/Bookmark

          

Comments

No comments on this story yet. You can be the first to Add A Comment!
Your Name:
Your Email:
URL:
Your Comment:



504 More News Stories ...


FREE Car Loan Quote

Fill out the form below to get a FREE, No-Obligation Car Loan Quote.

Email Address:
 
Zip Code:
 
Auto Loan 101's
New Car Price Quote
Make:
Model:
Zip Code:
 
   
 

What to Do Before the New Credit Card Act Starts This MonthWhat to Do Before the New Credit Card Act Starts This Month
Consumers who are in the market for a car loan this year may want to review their credit scores to see where they stand. If improvements need to be ma ... Read More

GMAC Offers Auto Loan Incentive to Buyers of Certified Used G6'sGMAC Offers Auto Loan Incentive to Buyers of Certified Used G6's
Now that the Pontiac brand is no more, shoppers looking for a new Pontiac will only find limited quantities of usually the highest trim models left on ... Read More

GMAC Cuts More Than 200 Employees in Auto Loan UnitGMAC Cuts More Than 200 Employees in Auto Loan Unit
GMAC Inc., which finances auto and home loans, plans to cut about 554 jobs and close three offices. GMAC is eliminating 313 positions in its mortgage ... Read More